Common Stock definition: Copy, customize, and use instantly
Introduction
The term "Common Stock" refers to the class of equity securities that represents ownership in a corporation, granting shareholders voting rights and the potential to receive dividends. It is essential for defining the rights and obligations of shareholders and determining the allocation of corporate profits and voting influence.
Below are various examples of how "Common Stock" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Common Stock" as ownership in a corporation
This definition ties "Common Stock" to the concept of ownership in a company, granting shareholders rights to vote and participate in key decisions.
"Common Stock" means the class of equity securities that represents ownership in a corporation, providing shareholders with voting rights in shareholder meetings and a share of the company’s profits through dividends.
Definition of "Common Stock" as a financial instrument
This definition connects "Common Stock" to its use as a financial instrument for raising capital and generating returns for investors.
"Common Stock" refers to equity securities issued by a corporation to raise capital, entitling holders to potential dividends and appreciation in stock value, subject to the company’s performance.
Definition of "Common Stock" as voting shares
This definition links "Common Stock" to the concept of voting shares, which allow shareholders to participate in corporate governance and major decisions.
"Common Stock" means shares that grant the holder voting rights in the corporation, enabling them to vote on matters such as the election of directors and approval of major business decisions.
Definition of "Common Stock" as part of liquidation distribution
This definition applies "Common Stock" to its position in the liquidation hierarchy, where common shareholders are last to receive distributions after debt and preferred stockholders are paid.
"Common Stock" refers to the shares that entitle holders to a distribution of assets in the event of liquidation, but only after all debts and preferred stockholders have been paid.
Definition of "Common Stock" for equity ownership
This definition connects "Common Stock" to the idea of equity ownership, allowing shareholders to participate in profit distribution and corporate matters.
"Common Stock" refers to the class of equity securities that represents ownership in a company, entitling shareholders to vote on corporate matters and participate in profit distribution through dividends.
Definition of "Common Stock" for shareholder benefits
This definition highlights the benefits of holding "Common Stock," such as receiving dividends, voting on corporate decisions, and benefiting from capital appreciation.
"Common Stock" means the type of stock that grants holders the right to receive dividends, participate in shareholder votes, and benefit from any increase in the company’s value through capital appreciation.
Definition of "Common Stock" for capital raising
This definition ties "Common Stock" to its role in helping companies raise capital from investors.
"Common Stock" refers to equity securities issued by a company as a method of raising capital, providing investors with ownership interest and the potential for dividends or stock appreciation.
Definition of "Common Stock" for dividend eligibility
This definition connects "Common Stock" to eligibility for receiving dividends when declared by the board of directors.
"Common Stock" means shares that entitle the holder to a proportion of the company’s profits, distributed in the form of dividends when declared by the board of directors.
Definition of "Common Stock" for corporate influence
This definition links "Common Stock" to the influence shareholders have on corporate governance.
"Common Stock" refers to shares that provide holders with the right to influence corporate decisions, including the election of directors and approval of major corporate actions.
Definition of "Common Stock" for long-term investment
This definition connects "Common Stock" to its potential for long-term financial growth through dividends and capital appreciation.
"Common Stock" means a type of equity investment that offers potential long-term growth through both dividends and capital appreciation, based on the company’s financial success.
Definition of "Common Stock" for equity participation
This definition ties "Common Stock" to participation in a company’s ownership structure and its profits.
"Common Stock" refers to equity securities that allow shareholders to participate in the ownership of a company, entitling them to vote on corporate decisions and share in the company's profits through dividends.
Definition of "Common Stock" for shareholder voting
This definition connects "Common Stock" to voting rights in shareholder meetings and decisions.
"Common Stock" means shares that grant holders the right to vote on important corporate matters, such as mergers, acquisitions, and board elections, alongside eligibility for dividends.
Definition of "Common Stock" for financial growth
This definition ties "Common Stock" to the opportunity for financial growth, as holders can benefit from both dividends and stock appreciation.
"Common Stock" refers to shares that provide an opportunity for financial growth, as holders can benefit from dividends and capital appreciation if the company performs well.
Definition of "Common Stock" for ownership rights
This definition highlights the ownership aspect of "Common Stock" and its related rights, such as voting and receiving dividends.
"Common Stock" means the class of stock that gives shareholders ownership rights, which may include voting on business matters and receiving dividends as determined by the board of directors.
Definition of "Common Stock" for equity in public companies
This definition ties "Common Stock" to public companies and their investors.
"Common Stock" refers to the shares issued by public companies, providing investors with a claim on the company’s assets and profits, usually accompanied by the right to vote in annual meetings.
Definition of "Common Stock" for speculative investment
This definition connects "Common Stock" to its speculative nature, offering high-risk but potentially high-reward returns.
"Common Stock" means an equity investment that offers speculative potential, where shareholders may benefit from the rise in stock price or dividends but are exposed to greater risk, including the possibility of loss.
Definition of "Common Stock" for ownership and control
This definition highlights how "Common Stock" grants ownership and voting rights, allowing shareholders to influence major corporate decisions.
"Common Stock" refers to shares that confer ownership in the corporation, providing shareholders with the right to vote on major corporate decisions and a claim to dividends and assets in the event of liquidation.
Definition of "Common Stock" for equity offering
This definition ties "Common Stock" to capital raising efforts through public offerings.
"Common Stock" means equity securities issued by a company to raise capital, giving shareholders an ownership interest in the company and the potential for future dividends and capital gains.
Definition of "Common Stock" for profit-sharing
This definition connects "Common Stock" to profit-sharing arrangements, where shareholders participate in the company's earnings.
"Common Stock" refers to the class of shares that entitles the holder to participate in the company's profit-sharing arrangements, receiving dividends based on the company's performance and profit distribution.
Definition of "Common Stock" for shareholder influence
This definition links "Common Stock" to the influence shareholders have in corporate governance.
"Common Stock" means shares that grant the holder a voice in the governance of the company, including voting rights on significant matters such as mergers, acquisitions, or changes to the company’s structure.
Definition of "Common Stock" for risk and return
This definition ties "Common Stock" to the high-risk nature of investing in a company, with the potential for significant returns.
"Common Stock" refers to equity securities that represent a high-risk investment in the company, offering the potential for high returns through dividends or capital appreciation, with the risk of loss if the company fails.
Definition of "Common Stock" for voting and liquidation rights
This definition connects "Common Stock" to voting rights and residual claims in liquidation.
"Common Stock" means the type of equity that grants holders the right to vote on corporate matters and participate in the liquidation process, though only after all senior liabilities and preferred stock claims are settled.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.